Sec 246- Payment of amount under appeal

[pr50]

When an order raised under Sec 143(3) is appealed against, as provided under Sec 246, is it necessary that 50% of the disputed amount has to be paid on demand, before the Appeal is considered? 

[BALAJI N V]

249 (4) requires only tax on income returned or tax payable as advance tax be paid, for admission of an appeal.  Payment of disputed tax is not a condition for admission of an appeal.  However the AO could hold the assessee as an 'assessee in default' on account of non payment demand.  Therefore, it is essential a stay application is filed before him.  Mere filing of an appeal does not result in stay on the collection.